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Can AI’s Energy Demands Be Balanced with Climate Goals?

can ais energy demands be balanced with climate goals business manchester

The artificial intelligence boom has led to skyrocketing energy demands, causing concerns about its environmental impact. Google revealed a notable 48% rise in greenhouse gas emissions linked to its datacentres since 2019, raising doubts about its net zero emissions goal by 2030. Microsoft, investing heavily in AI, faces similar challenges.

Datacentres play a crucial role in AI operations, storing and processing vast data volumes, but their energy consumption contributes significantly to CO2 emissions. Predictions indicate that electricity usage by these facilities could double by 2026. Furthermore, AI’s water consumption, projected to reach 6.6 billion cubic metres by 2027, adds to the environmental strain.

The Rising Emissions of AI

The surge in artificial intelligence has resulted in a notable spike in emissions from major tech companies. Google recently disclosed that the energy demand from its datacentres, essential for AI activities, has led to a 48% increase in its greenhouse gas emissions since 2019. Moreover, the company voiced concerns about meeting its ambitious target of net zero emissions by 2030. Microsoft, a significant supporter of OpenAI, also hinted at potential setbacks in achieving its environmental goals due to AI’s growing energy requirements.

Datacentres form the backbone of AI systems like Google’s Gemini and OpenAI’s GPT-4, storing and processing the immense volumes of data required. These facilities necessitate substantial electricity, generating CO2 emissions from their energy consumption and equipment production. The International Energy Agency projected that electricity consumption by datacentres could double by 2026 compared to 2022 levels. Additionally, water usage is considerable, with predictions that AI could account for up to 6.6 billion cubic metres of water use by 2027, which is nearly two-thirds of England’s annual consumption.

Expert Opinions on AI’s Environmental Toll

A UK government-backed report emphasized the significant role of the energy source’s carbon intensity in calculating AI’s environmental impact. Despite efforts to secure renewable energy, a significant portion of AI model training still depends on fossil fuels. Many tech firms are investing in renewable energy, but the demand might outstrip supply, pushing other users towards fossil fuels.

According to Alex de Vries, founder of Digiconomist, energy consumption is not only escalating, but companies like Google struggle to meet this demand sustainably. The consequence is a greater reliance on non-renewable energy sources, exacerbating the environmental impact.

The Strain on Renewable Energy

Global initiatives aim to triple renewable energy resources by the decade’s end to reduce fossil fuel consumption in line with climate targets. However, a sharp rise in energy demand from AI datacentres may challenge this goal. Even with a rapid increase in global renewable energy capacity in 2023, experts fear we may only be able to double it by 2030, per current plans.

Tech companies might need to invest more in new renewable energy projects to satisfy their energy needs. Onshore renewable projects like wind and solar farms can be developed relatively quickly, within six months. However, the overall process is often slowed by planning regulations and delays in connecting new projects to the power grid. Offshore windfarms and hydroelectric projects face additional hurdles and longer construction periods, typically between two to five years.

The Ongoing Demand for Electricity

An interesting aspect of the AI sector is the continuous and growing demand for electricity. As AI technology advances, the cost of energy tends to rise, theoretically encouraging companies to economize. However, the competitive nature of the industry often results in companies continuing to spend heavily on energy despite rising costs.

The competition to create the most advanced AI, such as OpenAI’s GPT-4 or Google’s Gemini, is intense. Frontier AI systems, the most advanced and expensive, require significant resources. This competition is often viewed as ‘winner takes all,’ pushing companies to invest massive amounts to stay ahead. As a result, the largest tech companies might justify continued spending on energy, aiming to achieve a monopoly on valuable AI technology.

Potential Solutions to AI’s Energy Appetite

Breakthroughs in AI technology frequently promise more efficient energy use. For example, DeepMind’s Chinchilla project in March 2022 demonstrated how to train AI models using significantly less computing power. However, such advancements often lead to more sophisticated AI systems rather than a reduction in energy use overall.

This phenomenon, known as Jevons’ paradox, occurs when technological improvements lead to increased, rather than decreased, resource consumption. As AI systems become more efficient, their applications expand, ultimately increasing the overall demand for electricity. Thus, despite advancements in AI efficiency, the fundamental problem of energy consumption persists.

Investing in Sustainability

Given the colossal energy demands of AI, major tech companies must significantly invest in sustainable energy. This includes funding the development of new renewable energy projects. While many firms have already secured substantial renewable energy resources, this may not be sufficient to meet the burgeoning energy needs of AI.

In addition to investing in renewable energy, tech companies could explore other innovative solutions to reduce their environmental impact. For instance, improving energy efficiency in datacentres and developing more energy-efficient AI models could help mitigate the carbon footprint of AI technology.

Despite the strides being made, the challenge remains immense. The technology sector’s efforts to go green must keep pace with the rapid advancements and growing energy requirements of artificial intelligence. This requires a concerted effort and substantial investment from all stakeholders involved.

Balancing Innovation and Sustainability

The dilemma faced by the technology industry is balancing rapid innovation with sustainability. On one hand, the drive to develop increasingly sophisticated AI systems propels the industry forward. On the other hand, the environmental cost of such advancements cannot be ignored.

Efforts to balance these aims involve a complex interplay of investment, technology development, and regulatory frameworks. Economies of scale and improved energy efficiency are crucial to reducing the environmental impact of AI without stifling innovation. Achieving this balance is essential for the long-term sustainability of both the industry and the planet.

Looking Ahead

As we look to the future, the intersection of AI development and environmental sustainability will remain a critical area of focus. The technology sector’s ability to innovate will play a significant role in shaping our world, but it must do so responsibly. Ensuring that advancements in AI are matched by sustainable practices is not just desirable – it is necessary for the health of our planet.


In light of the escalating demand for computing power, tech companies face significant challenges in aligning their environmental goals with their technological ambitions. They must innovate responsibly, balancing the relentless pursuit of AI advancements with sustainable practices. Moving forward, it is crucial for the technology sector to invest substantially in renewable energy and enhance efficiency to mitigate the environmental impact of AI. The future of AI and our planet’s well-being depend on a harmonious balance between progress and sustainability.

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